Chandigarh: Private firm to bring down T&D losses to 7.6 per cent in five years

UT adviser Manoj Parida on Thursday decided that the firm, which will be selected for power department privatisation in Chandigarh, will have to bring down transmission and distribution (T&D) losses to 7.6% in a span of five years.

CHANDIGARH: UT adviser Manoj Parida on Thursday decided that the firm, which will be selected for power department privatisation in Chandigarh, will have to bring down transmission and distribution (T&D) losses to 7.6 per cent in a span of five years.


It was decided that the selected firm will reduce 0.4 per cent every year starting from 9.2 per cent to 7.6 per cent by the end of five years. Meanwhile, the UT adviser will hold a pre-bid meeting with interested firms on Friday at the UT Secretariat in Sector 9, Chandigarh.

According to the 2018 directions of the Joint Electricity Regulatory Commission (JERC), T&D losses of Chandigarh were fixed at 9.30 per cent for financial year 2020-21. The department has been taking a plea that the high T&D losses have occurred due to non-availability of inter-state transmission point within the boundaries of Chandigarh and the metering is done at 400 KV Nalagarh, 220 KV Mohali and 220 KV Dhulekote.

On the other side, the commission was of the view that the intra-state distribution loss in the similar urban distribution companies, like BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Ltd (BYPL), Tata Power Mumbai, where majority of the sales is happening in domestic, is lower than the intra-state distribution loss of the UT power department. There is a significant potential of intra-state distribution loss reduction in Chandigarh.

Recently, the Supreme Court had vacated the stay of the Punjab and Haryana high court. The SC had issued its order on a petition filed by the Chandigarh administration against HC’s order of staying the order of the UT administration, wherein it had floated a tender for privatisation of the electricity department.

On December 1, the high court had stayed the privatisation till the next hearing and issued a notice to the Union government, the UT administration and the UT chief engineer on a petition filed by Gopal Dutt Joshi, general secretary, UT Powermen’s Union. While challenging the UT’s decision to float tender for privatization, the petitioner had submitted that the electricity rates were less in Chandigarh in comparison to the neighboring states and still the department was in profit. Despite the good financial state, the UT administration wanted to privatise it, he said.

The UT administration, in its tender, had proposed to give licence to a distribution company to be finalised after the bidding process for 25 years under the power department privatisation project.

Recently, the UT had written a letter to the Joint Electricity Regulatory Commission (JERC) and submitted a roadmap for the department’s privatisation. For the project, 17 private firms, including CESC Limited, Torrent Power Limited, Sterlite Power, Adani Transmission Limited, Tata Power Company Limited, GMR Generation Asset Limited, India Power Corporation Limited, DNH Power Distribution Corporation Limited and NTPC Electric Supply Limited, have bought request for proposal (RFP) documents to date.

Meanwhile, in the letter written to the JERC, the UT had also submitted that they have decided to formulate a company first, which will take over the assets of the power department. It was also decided to create a trust to manage the pension obligations of the government employees, who will be moved to the private company. The administration had sought advice of the power regulatory body on the principles of the re-organisation and transaction of the electricity department.

Despite protests by powermen, the administration, on the directions of the Union government, had started the process and appointed Pawan Kumar Sharma, executive engineer, UT electricity department, as nodal officer.

In May 2019, finance minister Nirmala Sitharaman said electricity distribution companies in Union Territories (UTs) would be privatised. Earlier, the UT had engaged a government-owned power finance corporation limited to unbundle the department and transform it into a corporate.


Source :- ET Energyworld

1 view0 comments

Recent Posts

CONTACT US

ABRAM Energy & Power Solutions Pvt. Ltd.

Kunjwani Talab , Jammu , JK , India -180010

+91 7042643054 ; Info@theabram.com

© 2020 by ABRAM ENERGY & POWER SOLUTIONS PVT.LTD.

PRIVACY POLICY AND TERMS OF USE 

  • LinkedIn
  • Facebook
  • Instagram